The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-07
A NEW SPECULATIVE MOL0CH.
Questionable Transactions Engaged in by
the New York Brokers and Bankers.

Special to the indianapolis Journal
NEW YORK Aug 6-The Moloeh Of specula-
ton is ever holding out redhot arms for new Of
ferines to his tickle majesty and the latest thing
in the world of gambling is the listing of silver
certificates at the Stock Exchange. Any person
may deposit at bank LOCO ounces Of silver and
receive certificate representing the market
value of the bullion. The Western National
Bank, of which the Hon. Daniel Manning is the
president. has been conspicuous 10 the move
ment, and there has been a question raised as to
the legality OF such transactions. They are
strictly legal, and may yet prove a considerable
source of revenue to the bank OF the shrew6 ex-
Secretary of the Treasury. who not so many
years ago was receiving $12 week as a reporter
for the Albany Argus and 81 a week from
Western paper for writing weekly review of
the Albany cattle market. The transaction
involves merely change from bullion to
certificate representing its value. The certificate
is. of course, negotiable, but it is in no sense
currency. This new move in the speculative
world was made primarily to promote specula-
tion The Stock Exchange brokers, hard pushed
by the Consolidated Exchange and the bucket
shops, is irving to increase its business, and the
silver certificates are held out as bait to tempt
the speculative public to try something new.
ANY person may take 900 ounces of silver to
bank. and on a payment of 20 cents for the
service will receive a certificate in exchange for
it. the bank holding the bullion in trust. Ger
tificates for some 240, 900 ounces of silver have
been issued within week. and their value, fuc-
tuating daily. is about Sc; that is. LOCO ounces
are worth $780, They be sold the Stock
Exchange the same IS stocks The plan has
been in operation only about week, and the
speculation as yet is on small scale. In the
fall, however if the market wakes up, it may
reach a large aggregate. Stock brokers en-
courage the new scheme because it prom
ises to increase their commissions. But
the anecuAtlye devices of hArd-puehed brokers
of little consequence, and the impor-
tant thing for consideration in this new depar-
turs is the possibility of New York rivaling Lon
don a great silver market There is no ques-
tion that this country has suffered seriously
from the fact that London is the dominant sill
market in the world. By manipulating the
price Englishmen have been able TO buy East
Indian wheat almost at their prices. the
silver rupee being the standard money in India.
A decline in the price of silver, the money with
which the wheat was paid for. meant practically
d fall in the quotation of Indian wheat, even
though wheat might really remain stationary.
England has robbed India for long time in this
fashion because the country is not fully opened
70 what term civitiEstion, AMI the means of
Discriminating intelEg gence are limited. With
the fall of silver American wheat must decline in
order to compete in the European markets with
the wheat of India. 1t would be advantage
to this country, 1t is contended. IL New York
could have something TO as to what silver Is
worth. This matter has nothing to do with the
silver question in the ordinary sense; that is q
vexed matter involving currency on which there
thousand opinions 1t is simply cues
tion whether New YORK secure a foothold
the dealing gs silver. to the end primarily that
New York brokers ont at the bows may get
living from silver commissions which they can
not get from stocks, and secondly. that London
may be dethroned the silver king of the
world, dealing stocked cards to the East Indians
and then telling the farmers of the West that
they must also "knuckle down" There is a
saving which runs 'robbing Peter to pay Paul, :"
but this is robbing all the disciples.
OSCAR WILLoUGHBY RIGGS.